Econ EOY Review 2 (25 ques.)

Front

What is a Tariff?

Back

A tax on imported and exported goods

Front

GDP is an important economic measurement because it measures the value of all new final goods and services produced by a country.

Back

measures the value of all new final goods and services produced by a country.

Front

The _______ considers the weighted averages of a group of consumer goods and services.

Back

Consumer price index

Front

Difference between imports and exports

Back

Balance of Trade

Front

A developing country’s two major sources of income from international trade are fishing and tourism. If the country’s exchange rate depreciated, what is likely to happen?

Back

The price of fish sold as exports would become cheaper.

Front

A technique of reducing or forgoing one or more desirable outcomes in exchange for increasing or obtaining other desirable outcomes in order to maximize the total return or effectiveness under given circumstances.

Back

Trade-off

Front

Countries will export goods and services that they can produce more efficiently. This is called —

Back

comparative advantage

Front

What is the opportunity cost of producing a car in the U.S. if the U.S. can produce 50 cars and 25 tools, and Peru can produce 20 cars and 15 tools?

Back

.5 tools

Front

Which country has the absolute advantage in producing airplanes? The US can produce 200 airplanes or 400 trucks. Japan can produce 300 trucks or 100 airplanes.

Back

US

Front

During an expansion what would you do to prevent inflation? Options: Lower the Reserve Requirement, Lower the Discount Interest Rate, and buy Bonds; Raise the Reserve Requirement, Raise the Discount Interest Rate, and Sell Bonds

Back

Raise the Reserve Requirement, Raise the Discount Interest Rate, and Sell Bonds